) recently sued Acacia Research Corp, claiming a breach of
contract pertaining to smartphone technologies. The lawsuit has
been filed under seal in Manhattan.
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Microsoft accused Acacia of claiming payments based on litigation
tactics instead of demanding payments based on the actual
valuation of its patents. The lawsuit has been filed by Microsoft
following the seven patent infringement lawsuits that Acacia
filed against Microsoft in October.
Acacia purchases patents for the collection of royalties related
to them or for taking legal action against the perceived
infringers of this intellectual property. In 2007, Acacia had
sued companies such as Oracle, Corel, Kodak, Nuance, Borland,
Novell and others on grounds of patent infringement.
However, Acacia never sues a company in its own name, on the
contrary it makes good use of its subsidiaries in this regard. In
this case too, the same tactic was adopted by Acacia while filing
lawsuits against Microsoft. One of the lawsuits that Acacia
recently filed against Microsoft was by Intercarrier
Communications, which happens to be an Acacia subsidiary, keeping
its image clean at the same time.
Microsoft and Acacia have entered into agreements in the past
too. In 2010, they entered into a definitive agreement over
patents for smartphone technology and in 2011 struck a deal
related to e-mail messaging.
Microsoft Corporation develops, manufactures, licenses, sells and
supports software products. The company operates in five
segments: Windows & Windows Live Division, Server and Tools,
Online Services Division, Microsoft Business Division, and
Entertainment and Devices Division. Microsoft reported revenues
of $18.53 billion in the fiscal first quarter of 2014.
Currently, Microsoft has a Zacks Rank #3 (Hold). However,
) with a Zacks Rank #1 (Strong Buy),
Microchip Technology Inc
), both with a Zacks Rank #2 (Buy) are more attractive investment